Preparing a Startup Pitch: how to showcase your idea and get investment

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When preparing a startup pitch, you need to refine it to the point where you’ve said enough about the business idea to get funding but haven’t been forced to add any non-existent facts. For a third of startups, pitching to investors becomes the point of failure. The statistics aren’t very encouraging: on average, 63% of tech startups don’t make it, 25% close down during the first year, and only 10% survive in the long run. At JetSoftPro, we not only provide software development services and add extra value to your technology products, but also help our startup clients prepare for pitching. In this blog post, we outline the key points you need to focus on.

A bad startup pitch example

Hello, esteemed investors! My idea will change the world. I will be the next Steve Jobs. We have come up with a unique technology that will change business processes for 99% of businesses. It suits all businesses without exception. The essence of the idea is that we come to a business, consult on automation, oversee the processes, and as a result, the business succeeds. We haven’t yet received confirmation from the real market, but my mom has a handmade soap store, and our idea works great there. Here is a photo of my mom, and here is the soap.

We only need $100,000, and right now you have a unique opportunity to invest in this business that will change everything.

You have just read an example of a terrible startup pitch. It may seem comical, but in reality, many novice startup founders, when preparing a startup pitch, end up with something like this text.

Let’s break down the parts you need to include in the process of preparing a startup pitch

  1. Your Background as a Specialist
    • Outline your professional background, highlighting relevant experience and expertise. Mention any previous startups you’ve been involved in, significant projects you’ve led, and any roles that have equipped you with the skills necessary to drive this new venture.
    • Include your educational background, certifications, and any special training that adds credibility to your capability to run the startup.
    • Highlight any awards, recognitions, or notable accomplishments in your career that can establish your reputation and reliability as an entrepreneur.
  2. Detailed Analysis of the Problem
    • Clearly define the problem your startup aims to solve. Explain its significance and why it matters.
    • Present data and research that quantify the problem. Use statistics, survey results, and industry reports to demonstrate the scope and impact of the issue.
    • If possible, include case studies or testimonials from potential customers or industry experts that support the existence and urgency of the problem.
  3. Concept of Your Product
    • Describe the main technology behind your product or service. Explain how it works in a clear and concise manner, avoiding overly technical jargon unless necessary.
    • Highlight what makes your product unique and better than existing solutions. Discuss any patents, proprietary technology, or innovations that give you a competitive edge.
    • Provide details about the current stage of product development, including prototypes, beta testing results, or any existing versions of the product.
  4. Business Model
    • Explain how your startup plans to generate revenue. This could include subscription fees, sales, licensing, advertising, or other revenue streams.
    • Outline your pricing strategy and justify how you arrived at these figures. Discuss market comparisons and why your pricing is competitive.
    • Provide an overview of the costs associated with producing and delivering your product or service, including both fixed and variable costs.
  5. Investment Payback Timeline
    • Present a detailed timeline for when investors can expect to see a return on their investment. Use realistic and data-backed projections.
    • Define key milestones that will indicate progress toward profitability. This can include product launches, user acquisition goals, or revenue targets.
    • Discuss the steps you are taking to mitigate risks and ensure that the investment is sound. This can include market diversification, strategic partnerships, or contingency plans.
  6. Visualization of the Product or Service
    • If you have a physical product, show a prototype. For digital products, provide a demo or a walk-through video.
    • For software or apps, include UI mockups or screenshots that give a clear idea of what the final product will look like.
    • Use visuals to illustrate the customer journey and how users will interact with your product or service.
  7. Spending Business Plan
    • Break down the amount of funding you need and specify how it will be allocated across different stages of development. Include categories such as R&D, marketing, operations, and personnel.
    • Explain the expected outcome of each spending category. For example, how much funding will be used to complete product development, launch marketing campaigns, or expand the team.
    • Provide a financial forecast that includes projected income statements, cash flow statements, and balance sheets for the next 3-5 years. Use these projections to demonstrate the sustainability and growth potential of your startup.

Example of a Good Pitch for a Tech Startup

Let’s assume you’ve come up with a new business: a mobile application that will remind people to take their pills. We will compose this text based on the parameters we’ve described.

Startup Pitch for a Pill Reminder Mobile Application

Hello, esteemed investors! My name is Alex Johnson, and I have over 10 years of experience in the healthcare technology sector. I hold a Master’s degree in Health Informatics from the University of Chicago and have previously led the development of two successful health-focused mobile applications, one of which was acquired by a leading healthcare provider.

Every year, millions of people struggle with medication adherence, leading to severe health complications and increased healthcare costs. Studies show that approximately 50% of patients do not take their medications as prescribed, contributing to 125,000 deaths annually in the United States alone. Our research indicates that a significant portion of this non-adherence is due to forgetfulness.

Our mobile application, PillPrompt, is designed to address this issue by providing users with timely reminders to take their medications. Leveraging advanced notification systems, integration with wearable devices, and personalized scheduling, PillPrompt ensures users never miss a dose. What sets us apart is our proprietary AI algorithm that learns and adapts to users’ habits, offering tailored reminders and motivational insights.

PillPrompt will generate revenue through a freemium model, offering basic features for free and premium subscriptions for advanced functionalities such as detailed adherence reports, caregiver notifications, and integration with health records. We will also explore partnerships with healthcare providers and pharmaceutical companies for bulk licensing.

We project that investors will start seeing returns within the first 18 months of launch. By the end of year two, we aim to achieve a user base of 500,000 with a conversion rate of 10% to premium subscriptions. With strategic partnerships and expanding market reach, we anticipate profitability by the third year.

Here are some UI mockups showcasing PillPrompt’s user-friendly interface. The app features intuitive navigation, clear reminders, and engaging visuals that encourage adherence. Additionally, we have developed a working prototype and have commenced beta testing with a group of 200 users, receiving highly positive feedback.

We are seeking $500,000 in funding to be allocated as follows:

  • $200,000 for product development and enhancement, including AI refinement.
  • $150,000 for marketing and user acquisition efforts.
  • $100,000 for operational expenses and team expansion.
  • $50,000 for contingencies and further research.

Each phase of spending is geared towards milestones such as completing beta testing, launching the app, achieving our initial user acquisition targets, and expanding features based on user feedback.

Thank you for your time and consideration. With PillPrompt, we aim to revolutionize medication adherence and significantly improve health outcomes worldwide. We look forward to your support in making this vision a reality.

What You Should Prepare for an Investor Besides the Startup Pitch

1. Show your contribution

Investors are not willing to invest in projects where the founders haven’t invested themselves. If your business expenses are between $0-$1000, it is still at the row idea stage and considered high risk. Show the investor that you have also invested in the business, this is the best way to convince your audience that you believe in your business.

2. Your Appearance for the Presentation

If it’s a video call, ensure that the room is well-lit and the background is appropriate for a business meeting. Your professional appearance is crucial in making a good impression.

3. Testimonials and Additional Materials

Provide testimonials about your product or service and have a presentation on a separate USB drive or similar in case the investors want to delve deeper and review the information again.

Can You Use AI When Preparing a Startup Pitch?

Absolutely, generative AI can help you articulate complex ideas when preparing a startup pitch. However, don’t hesitate to edit the text and refine your requests to the AI until your pitch is clear, specific, and compelling.

At JetSoftPro, we are happy to assist you with preparing your pitch for investors and taking on software development services in the next stage.

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